02 Aug

COVID-19 Government Support News: 2nd August 2021

Megan
Megan
COVID-19 Government Support News: 2nd August 2021

Please note that this update is correct as of the 2nd August 2021. If you need any help or have any questions on the below please contact us on 01256 883 012.

Coronavirus Job Retention Scheme – Update

The Coronavirus Job Retention Scheme has been extended until 30 September 2021. From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.

Claims for furlough days in July 2021 must be made by 16 August 2021.

How to report grant payments in Real Time Information

Find out how to report Coronavirus Job Retention Scheme grant payments on Real Time Information submissions here

Tax Treatment of the Coronavirus Job Retention Grant

Payments you have received under the scheme are to offset the deductible revenue costs of your employees. You must include them as income when you calculate your taxable profits for Income Tax and Corporation Tax purposes.

Businesses can deduct employment costs as normal when calculating taxable profits for Income Tax and Corporation Tax purposes.

Individuals with employees that are not employed as part of a business (such as nannies or other domestic staff) are not taxable on grants received under the scheme. Domestic staff are subject to Income Tax and

National Insurance contributions on their wages as normal.

Click here to read more. 

Self-Employment Income Support Scheme Update

The online service for the fifth grant is now available.

You can claim the fifth grant if you think that your business profit will be impacted by coronavirus (COVID-19) between 1 May 2021 and 30 September 2021. You will need to confirm that you meet other eligibility criteria when you make your claim. You should make your claim on or after the personal claim date HMRC has given you.

Click here to read more.

VAT Deferred Due to Coronavirus

Businesses that deferred VAT payments due between 20 March 2020 and 30 June 2020 were able to either:

  • Pay in full by 31 March 2021.
  • Join the online VAT deferral new payment scheme by 21 June 2021 to spread payments of deferred VAT over smaller, interest free instalments.
  • Contact HMRC to make an arrangement to pay by 30 June 2021.

Information about the VAT deferral penalty has been added. Businesses could be charged a 5% penalty or interest if they did not pay in full or make an arrangement to pay HMRC by 30 June 2021.

Any deferred VAT outstanding after 30 June 2021 will be treated as debt and may be subject to a penalty. If you are unable to pay and need more time, find out what to do if you cannot pay your tax bill on time. If you have made an arrangement to pay and need to discuss this with HMRC, call the Coronavirus (COVID-19) helpline.

Click here to read more.